News

June 28, 2010

In the last several years, Janaf Shopping Yard has added a number of retailers that have changed the face of the Norfolk shopping center. The outdoor center with more than 90 retailers, whose revenue increased from 2008 to 2009, is in a highly traveled stretch of the Military Highway corridor.

"The location is good in terms of the retail region and it has a convenience factor to it," said Chuck Rigney, assistant director of the Norfolk Department of Development.

From a retail perspective, he said, Janaf has become "an extraordinarily important corridor" for the city.

Janaf Shopping Yard benefits by being at the intersection of two major highways: Virginia Beach Boulevard and Military Highway. Interstate entrances onto Military also help.

"The traffic counts are terrific, and that's what retailers want," Rigney said. "I think Janaf has shown a history of re-creating itself. "

He also said that "while Janaf has had to readjust to changing retail conditions, they seem to find a way to reinvent themselves periodically."

Janaf, an acronym for Joint Army Navy Air Force, was formerly an airfield landing space. Since the shopping center was built in 1959, a number of tenants have come and gone. McKinley Inc., a Michigan-based real estate company, acquired Janaf in 1991 and still owns it.

Figures from the Norfolk Commissioner of Revenue, as well as annual sales and revenue reports from Norfolk financial districts, indicate that Janaf is doing well. The district is one of two in the Military Highway Corridor that showed an increase in tax revenue. Janaf had a 1.4 percent increase from 2008 to 2009 - $6,928,629 in fiscal year 2008 and $7,025,598 for 2009.

The Lake Wright corridor was the only other corridor to show an increase, 1.5 percent. The Military Circle, Broad Creek, Norfolk Commerce Park and Bromley districts all showed revenue drops of less than 2 percent in the same time frame, while the Military Square district had the biggest drop with a 10.7 percent decrease from 2008 to 2009.

The Janaf sector was second only to downtown Norfolk in city revenue, Rigney said.

"Interstate 264 to Northampton Boulevard is a tremendous tax revenue for the city. In terms of overall revenue, it is the number-two revenue [source] in the city."

Janaf's property manager, Diane O'Brien-Bolin of McKinley Inc., said that the shopping center has endured because it's diverse and adapts to change.

"We never say no," O'Brien-Bolin said. "If we need to expand and knock out the back [of a store] and make it bigger - that's all a part of the excitement of Janaf keeping up."

The face of the 1 million-square-foot center has changed over time.

"Janaf has been a first for a lot of tenants that come [to Norfolk]," she said.

Some Norfolk "firsts" for Janaf were Olive Garden, Sports Authority and Old Navy.

Mike Gurley of S.L. Nusbaum Realty Co. has helped in Janaf's transformation. Gurley has been leasing Janaf tenants for almost 10 years. McKinley handles the property management side, while Nusbaum deals solely with leasing.

"When I took over the shopping center, the whole right side was vacant," said Gurley about Janaf almost a decade ago. "The Montgomery Ward and HQ buildings were vacant - so it was in need of some work."

The large Montgomery Ward space was daunting. Gurley said that typically "there aren't that many 160,000-square-foot tenants running around."

So smaller stores were used to fill the large void. By 2005, K&G Fashion Superstore and Shoe Carnival were in the Ward space. Gurley said the retail value of the space improved through use of smaller retailers.

The new tenants played off existing stores in Janaf, by requesting storefronts that would face retailers across the street. Gurley recalled that Shoe Carnival felt it was crucial "that TJ Maxx customers see [their] sign as soon as they walk outside the door."

Currently, the former HQ space is a BJ's Wholesale Club.

The most recent major retail additions in Janaf occurred between 2006 and 2008. Nusbaum replaced the former Circuit City space, over 20,000 square feet, with Petco. In late 2007 through 2008, a new development was built and inhabited by Qdoba, Panera Bread and Navy Federal Credit Union. Gurley said the rest of the spaces were leased less than a year after the newcomers arrived.

O'Brien-Bolin, the property manager, said the change is reflective of Janaf "trying to stay with the times and get with things that the market is demanding." She said that the credit union space "is the perfect place for them to be, to draw in the military."

Other recent retail changes along Military Highway include facelifts for Walmart and Target, which both underwent construction in search of a fresh look.

Rigney said that while Janaf's retail growth "could have been more robust" for the 2008 to 2009 fiscal year, the corridor shows that it's "doing a good job of staying on the latest trends in retail," despite the economy.

As for the future, Rigney said, "We think it's a good sign that we're seeing some new life in the economy; 2010 is the beginning of a recovery, and we are hoping that by 2011 the worst will be over." nib

June 28, 2010

McKinley Client Services is pleased to announce we have been appointed as Receiver for Pontrail Apartments, a 192 unit apartment community in South Lyon, Michigan.

We are excited to have the opportunity to apply our proven track record of success to assist with this asset. Im confident that by applying our teams passion and expertise, we will be able to enrich the quality of life and create value for all of the stakeholders, states Albert M. Berriz, Chief Executive Officer.

McKinley, founded in 1968, is a well respected national real estate investment firm that owns and operates $2.4 billion in assets including 139 properties for its own account and for select clientele. This includes 30,039 apartments and over 7.0 million square feet of commercial space located in 19 states. Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief Executive Officer with 1,250 full-time employees nationwide.

June 27, 2010

McKinley Client Services is pleased to announce the Circuit Court of Alpena County has appointed McKinley the Receiver for a freestanding, single-tenant building currently leased to Staples. The retail building is located in Alpena, Michigan.

McKinley, founded in 1968, is a well respected national real estate investment firm that owns and operates $2.4 billion in assets including 139 properties for its own account and for select clientele. This includes 30,039 apartments and over 7.0 million square feet of commercial space located in 19 states. Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief Executive Officer with 1,250 full-time employees nationwide.

McKinleys
Commercial Client Services group is pleased to announce another successful management
and disposition assignment. McKinley
assumed management of the property, an 8,000
square foot retail building in Detroit, Michigan on June 19, 2009.

McKinley, founded in 1968, is a well respected national real
estate investment firm that owns and operates $2.4 billion in assets including
139 properties for its own account and for select clientele. This includes
30,039 apartments and over 7.0 million square feet of commercial space located
in 19 states. Headquartered in Ann Arbor, Michigan, Albert M. Berriz
serves as Chief Executive Officer with 1,250 full-time employees nationwide.

June 22, 2010

McKinleys Commercial Client Services group is pleased to
announce that the Superior Court of Mecklenburg County has appointed McKinley
the Receiver for the Park Avenue Building, a 92,000 square foot mixed-use,
office and retail building in Charlotte, North Carolina. The building includes tenants such as CBS
Radio, Carrabbas Italian Grill and Quiznos Sub Shop.

McKinley, founded in 1968, is a well respected national real
estate investment firm that owns and operates $2.4 billion in assets including
139 properties for its own account and for select clientele. This includes
30,039 apartments and over 7.0 million square feet of commercial space located
in 19 states. Headquartered in Ann Arbor, Michigan, Albert M. Berriz
serves as Chief Executive Officer with 1,250 full-time employees nationwide.

McKinleys Commercial Client Services group is pleased to
announce the successful management and disposition of the Charlestowne
Mall. Charlestowne Mall is an 847,370
square foot regional shopping mall in St. Charles, Illinois. McKinley assumed management of the mall in
June 2007.

We appreciated the opportunity to be involved in the
repositioning of this asset on behalf of our valued client, states Albert M.
Berriz, Chief Executive Officer of McKinley.

McKinley,
founded in 1968, is a well respected national real estate investment firm that
owns and operates $2.4 billion in assets including 139 properties for its own
account and for select clientele. This includes 30,039 apartments and over 7.0
million square feet of commercial space located in 19 states.
Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief
Executive Officer with 1,250 full-time employees nationwide.

June 20, 2010

McKinley,
Inc. has been appointed as Receiver for Mitchells Park Apartments, a 122 unit garden-style
community located in Smyrna, Georgia.

We
are excited to have the opportunity to apply our proven track record of success
to assist with this asset. Im confident
that by applying our teams passion and expertise, we will be able to enrich
the quality of life and create value for all of the stakeholders, states
Albert M. Berriz, Chief Executive Officer.

McKinley,
founded in 1968, is a well respected national real estate investment firm that
owns and operates $2.4 billion in assets including 139 properties for its own
account and for select clientele. This includes 30,039 apartments and over 7.0
million square feet of commercial space located in 19 states.
Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief
Executive Officer with 1,250 full-time employees nationwide.

June 20, 2010

McKinley,
Inc. has been appointed as Receiver for Daytona Village Apartments, a 76 unit
apartment home community located in Daytona Beach, Florida.

We
are excited to have the opportunity to apply our proven track record of success
to assist with this asset. Im confident
that by applying our teams passion and expertise, we will be able to enrich
the quality of life and create value for all of the stakeholders, states
Albert M. Berriz, Chief Executive Officer.

McKinley,
founded in 1968, is a well respected national real estate investment firm that
owns and operates $2.4 billion in assets including 139 properties for its own
account and for select clientele. This includes 30,039 apartments and over 7.0
million square feet of commercial space located in 19 states.
Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief
Executive Officer with 1,250 full-time employees nationwide.

June 16, 2010

McKinleys Residential Client Services is pleased to
announce the successful disposition of Stonehedge Apartments. Stonehedge
Apartments is a 251 unit apartment community located in Evansville, Indiana. McKinley was appointed receiver of this
community in January 2007.

We appreciated the opportunity to be involved in the
repositioning of this asset on behalf of our valued client, states Albert M.
Berriz, Chief Executive Officer of McKinley.

McKinley,
founded in 1968, is a well respected national real estate investment firm that
owns and operates $2.4 billion in assets including 139 properties for its own
account and for select clientele. This includes 30,039 apartments and over 7.0
million square feet of commercial space located in 19 states.
Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief
Executive Officer with 1,250 full-time employees nationwide.

June 16, 2010

McKinleys Commercial Client Services group is pleased to announce that it has been appointed Property Manager for Eastlake Commons. Eastlake Commons is a 96,000 square foot retail shopping center located in Sterling Heights, Michigan. The shopping center includes tenants such as CVS, Dinette Masters, and Roosevelts Billiards, a popular bar and grill with multiple locations in southeastern Michigan.

McKinley, founded in 1968, is a well respected national real estate investment firm that owns and operates $2.4 billion in assets including 139 properties for its own account and for select clientele. This includes 30,039 apartments and over 7.0 million square feet of commercial space located in 19 states. Headquartered in Ann Arbor, Michigan, Albert M. Berriz serves as Chief Executive Officer with 1,250 full-time employees nationwide.